FYI: A reader asks:
I cannot predict the future, but if I needed to assign a probability that in the next 10 years the United States joins many other advanced economies in the negative interest club, I would put it at 75 percent or better.
My question is: Where can someone such as myself put my retirement money if indeed we are headed to negative interest rates here in the US?
First of all, it’s impossible to know exactly what to make of negative interest rates in government bonds around the globe for the simple fact that it’s never happened before. There is no historical precedent for this. Anyone who tells you they know how this will transpire is a maniac.
Predicting interest rate moves is notoriously difficult but I’m increasingly coming around to the idea that it’s only a matter of time until the U.S. joins much of the developed world with negative nominal interest rates in government bonds. We discussed on the podcast this week:
Regards,
Ted
https://awealthofcommonsense.com/2019/08/investing-in-a-negative-interest-rate-environment/
